Massabe

Hello, I am considering opeing a new salon and have some concerns. Please advise.
The salon will be open in a small town (5000) people with approxiamtely 1800 men and women between 18 and 44 within a 3 mile radius. The shopping center is the only one within 5 miles and contains the areas only grocery store. The closet reputable tanning salon in 5 miles away in another town.

The shopping center has an existing tanning salon in it but that salon is failing. I originally inquired about purcahsing the existing salon and this was my findings.

- no computer systems, all records maintained manually (what records were maintained)
- only 2 levels of beds, 28 bulb no facial and 28 bulb 2 facials, all beds 8 to 10 years old.
- no marketing performed.
- it appeared that money was being taken in and out with no records to support another business.

I chose not to purchase existing salon as I felt I could not stay competitive with existing beds. So I chose to start new salon in same area with new beds, name, look, etc.

My Question - am I correct in assuming this business failed due to mis-management or is the population just to small to support a 6 bed salon.

My intentions are to bring in 2 20 minute beds, 2 15 minute beds, 1 Stand up, and 1 10 minute bed.

love to hear your thoughts...

dcjjp2

Not that many people to pull from. I'd be leary. The average is 10% of population tans, so like 500 database is pretty tiny.

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Jeff

unity

I agree. You dont need many beds at all and you dont need much.

IF I were to do this I would get 4 20 min triple facial beds and one 10 minute stand-up, thats it. I would get used but nice equipment and I may one start out with 2 of those beds and have the rooms ready to add more.

Im a geek, so I need a computer system but a card system would be fine. I would not plan on hiring anyone and I would likely be closed on Sundays to trim costs. I would also likely not open until 11am and I would probably close by 8pm. Its easy to add more hours, hard to take away.

I would also count on another source of income and not be in any debt before I start something like this. If it fails, you can pull out without killing your credit.

Just my 2 cents.

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OMG! I made a post! :)

eyecandytanning

500 potential people in your database. Will that pay for rent, electricity, bed leases, insurance, etc year round? (grocery store shopping centers tend to be costly) Now 500 potential does not mean they will tan with you and they will not tan year round. In small towns co-op businesses do well, Like tanning and smooties, etc.

Did this other salon already close? Or will you be competing against them? If they closed, move into their location. It will save you the cost of buildout. Negotiate in your lease upgrading electrical etc.

MR. MAX

My experience does not show that 10% of population tans regularly. More like 3 to 4%. Also, out of the 5000 people, you need to know ethnic backgrounds, ages, and income. These are the bare minimums when it comes to research. And if the other store stays opened... you both are now splitting the already sparce amount of clients (You will not take everyone from them right away, no matter how much better you are). Ask landlord for demographics. I will usually only look at 3 mile radius, but in a rural area I would expand the demo's to 5 miles. Good Luck

sunsally

Not enough population to support you and the salon 5 miles away. They are already established, that much further to paying off their bills, etc.

This would be a very bad investment.

mjabaay

They failed for a reason, You could put the best of the best w/ the latest and greatest of every thing and still be broke in 6 months. I have 60,000 cars per day that drive by my location. The build out will kill you, if you are determined to try it, take over the other guys salon when he closes. PS only sign a one year lease and utilize used equipment as mentioned above. PSS pay cash for everything, 0 debt, = 50/50 you'll make it.

PSSS I'd pass find a store w/in a half hour drive w/ pop. to support a tanning salon.

PSSSS I am rambling